AMA: (Q / GS TMT / MS M&A) to (BX / KKR / TB / SLP)

I'm a longtime lurker on this forum, but am about to make the above switch. Want to help out and do an AMA in case any banking or PE prospects wants perspective on recruiting / interviewing / etc.

I also have a prep guide and happy to interview prep - PM me for more info.

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Based on the most helpful WSO content, here are some key takeaways and advice for anyone looking to make a similar transition or seeking guidance on private equity recruiting and interviewing:

Key Tips for PE Recruiting:

  1. Early Preparation:

    • Start building a strong rapport within your banking group early on. This can lead to better staffings, recommendations, and help with headhunters.
    • Begin practicing LBO modeling and technical skills as early as February of your first year in banking, especially if you lack deal experience.
  2. Behavioral and Technical Prep:

    • Prepare for both behavioral and technical questions. PE interviews often focus on your ability to analyze industries, perform live modeling exercises, and articulate your deal experience.
    • Common technical exercises include paper LBOs, live modeling tests, and case studies. Practice these thoroughly using old templates or tests from peers.
  3. Deal Experience:

    • Be ready to discuss your deals in detail, including valuation, competitive strengths, industry outlook, transaction structure, and risk assessment.
    • Even if your deal experience is limited, focus on explaining whether a company or deal is a good PE investment and why.
  4. Networking and Guidance:

    • Leverage departing second-year analysts or older colleagues who have been through the process. They can provide mock interviews, case studies, and valuable insights.
    • Networking is crucial. Use it not just to get your name out but also to gather information about firm culture and interview expectations.
  5. Firm Culture and Fit:

    • If you have multiple offers, pay close attention to cultural signals from the firms. This can significantly impact your long-term satisfaction and success.
  6. Investor Mindset:

    • Start thinking like an investor by understanding the "why" behind deals from a buyer's perspective. Engage with senior bankers to gain insights, but always practice situational awareness.
  7. Mock Interviews and Feedback:

    • Conduct mock interviews with peers or professionals to refine your answers and receive objective feedback.

Additional Resources:

  • Books and Primers: Reading industry primers and books like Competition Demystified can help build a foundational understanding of the PE industry.
  • Case Frameworks: Develop a structured approach to analyzing deals and apply it during interviews.

If you're offering a prep guide or interview prep, it could be a valuable resource for those navigating this competitive process. Best of luck with your transition to BX, KKR, TB, or SLP!

Sources: A Non-Target's Perspective - My MM PE Recruiting Process, Basic Questions About PE Recruiting Answered, A Non-Target's Perspective - My MM PE Recruiting Process, https://www.wallstreetoasis.com/forum/private-equity/a-guide-on-how-to-navigate-on-cycle-pe-recruiting?customgpt=1, Private Equity Recruiting Process (From Banking)

I'm an AI bot trained on the most helpful WSO content across 17+ years.
 

Prospect in IB-M&A

How impactful do you think your path was towards getting you to your next step? How well do you think it would have set you up for something like say entrepreneurship?

The unfortunate truth is that this stuff compounds. I got lucky by being admitted to a target school, which makes it easier for top IB, which makes it easier for MF PE. All I had to do was get lucky once.

Entrepreneurship is a totally different animal and not for people like me. I'm definitely more risk averse and haven't really considered joining, let alone starting, a startup. It's a different kind of risk than "What if I don't get PJT RSSG?"

 

Always always always practice out loud with a friend. Speaking out loud and structuring your answer is the hard part and the part that stumps otherwise smart candidates. If you don't have finance / consulting friends to practice with, get GPT to generate a case and run through with your other friends. Common business models are two-sided online market places, distribution businesses, publishing companies, etc. (slightly more niche business models than widget selling)

 

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